Additional lending on a mortgage

ns176897

Hi,

My wife and I moved house 6 weeks ago, valued at £400k, we paid £390k with a £45k deposit (i.e. 90% LTV). We are in Scotland and the lender is Accord.

The house is in a desirable area and good condition, however we are considering some work to alter layout and size, adding an extra room downstairs and doing an attic conversion extending from the current two oddly shaped bedrooms upstairs to three proper bedrooms and two bathrooms including a large master with en-suite etc. We have been quoted £80-100k for this, the increase in house value would significantly exceed this.

What are people's experience of taking additional lending from their mortgage provider for this kind of thing? Is it a reasonable thing to do? Is it actually do-able? Clearly we will require further time (minimum 6/12 to be eligible for additional lending in the first place) and firm plans, and an idea of the potential end value.

Thanks.

p.s. I wasn't sure if this should be under 'loans' or 'mortgages' so I've put it in both - sorry!

kingstreet

The mortgage lender will not fund this until after it is done.

You need to find an alternative source of finance, then get your additional borrowing from Accord, or remortgage, afterwards.

dimbo61

You moved SIX weeks ago so your house is worth what you paid for it £390K.
You put down just over 10% and your lender is Accord part of YBS BUT the SVR is 5.99% one of the highest from a Main Stream Lender.
You will find that Accord will not lend you any more as LTV 90% now.
If you did have £80-£100K spare and spent that on an extension you may well find that the property is worth No more than £500K ( Stamp Duty!!)
Save for the building work and do it in stages !!
You live in Scotland and unless in a very fast rising area IE Aberdeen I doubt you home will increase in value for a few years.